New World Bank Document · 2016. 11. 7. · ADDITIONAL FINANCING DATA SHEET Haiti Second Additional Financing for Infrastructure & Institutions Emergency Recovery (P156049) LATIN

Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: PAD1512

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT PAPER

ON A

PROPOSED ADDITIONAL GRANT

IN THE AMOUNT OF SDR 2.0 MILLION

(US$2.8 MILLION EQUIVALENT)

TO THE

REPUBLIC OF HAITI

FOR A

INFRASTRUCTURE AND INSTITUTIONS EMERGENCY RECOVERY PROJECT

October 28, 2016

Transport and ICT Global Practice

Latin America and the Caribbean Region

This document is being made publicly available prior to Board consideration. This does

not imply a presumed outcome. This document may be updated following Board

consideration and the updated document will be made publicly available in accordance

with the Bank’s policy on Access to Information.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective: October 17, 2016)

Currency Unit = Haitian Gourds

64.7 HTG = 1 USD

0.73000 SDR = 1 USD

FISCAL YEAR

October 1 – September 30

ABBREVIATIONS AND ACRONYMS

AF Additional Financing

BRH Haiti Central Bank (Banque de la République d’Haiti)

CIAT Inter-ministerial Committee for Territorial Planning (Comité Interministériel

d'Aménagement du Territoire)

CNMP Procurement Regulatory Agency (Commission Nationale des Marches Publics)

CPF Country Partnership Framework

CS-CCA Supreme Audit Institution (Cour Supérieure des Comptes et du Contentieux

Administratif)

GoH Government of Haiti

ICB International Competitive Bidding

IDA International Development Association

IDB Inter-American Development Bank

IGF Financial Inspectorate (Inspection Générale des Finances)

IHSI Haitian Statistics Institute

IIERP Infrastructure and Institutions Emergency Recovery Project

IMF International Monetary Fund

MEF Ministry of Economy and Finance (Ministère de l’Economie et des Finances)

MPCE Ministry of Planning and External Cooperation (Ministère de Planification et

Coopération Externe)

MTPTC Ministry of Public Works, Transportation and Communication (Ministère de

Travaux Publics, Transport et Communications)

NCB National Competitive Bidding

NGO Non-Governmental Organization

OM Operations Manual

OCPAH Association of Chartered Public Accountants of Haiti (Ordre des Comptables

Professionnels Agréés d’Haiti)

PCU Project Coordination Unit (Unité de Coordination de Projet)

PDO Project Development Objective

PEFA Public Expenditure and Financial Accountability

PIMAP Public Investment Management Action Plan

PFM Public Financial Management

PFMRAP Public Financial Management Reform Action Plan

PPA Project Preparation Advance

QCBS Quality Cost Based Selection

3

SBD Standard Bidding Document

SDR Special Drawing Rights

SYSDEP Expenditure Information System (Système d’Informatisation des Dépenses)

SYSGEP Public Investment Information System (Système de Gestion de Projets)

UCE Central Execution Unit (Unité Centrale d’Exécution) (PCU of MTPTC)

UCP Project Coordination Unit (Unité de Coordination de Projet – UCP-MEF)

ULCC Anticorruption Agency (Unité de Lutte Contre la Corruption)

USAID United States Agency for International Development

Vice President: Jorge Familiar

Country Director: Mary Barton-Dock

Senior Global Practice Director:

Acting Practice Manager:

Pierre Guislain

Gylfi Palsson

Task Team Leaders: Pierre Xavier Bonneau,

Mamadou Lamarane Deme

4

HAITI

INFRASTRUCTURE AND INSTITUTIONS EMERGENCY RECOVERY PROJECT –

ADDITIONAL FINANCING

CONTENTS

........................................................................................................................ 9

.................................................. 10 A. Country Context ......................................................................................................... 10

B. Sectoral and Institutional Context .............................................................................. 12

C. Consistency with CPF ................................................................................................ 12

D. Parent and First Additional Financing Project Background ....................................... 13

E. Status of Implementation ............................................................................................ 13

F. Rationale for Additional Financing, Project Restructuring and Additional Benefits . 14

............................................................................................................ 14 A. Proposed Changes Data Sheet .................................................................................... 15

B. Revised Financing Plan .............................................................................................. 21

C. Results Framework ..................................................................................................... 21

D. Institutional Arrangements ......................................................................................... 21

E. Social, Environmental and Fiduciary ........................................................................ 21

F. Amendment to Financing Agreement ......................................................................... 22

......................................................................................................... 22

..................................................................................... 23

................................... 25

....................................................................................... 39

.................................................................................... 40

..................................................................... 41

......................... 44

5

ADDITIONAL FINANCING DATA SHEET

Haiti

Second Additional Financing for Infrastructure & Institutions Emergency Recovery (P156049)

LATIN AMERICA AND CARIBBEAN

GTI04

Basic Information – Parent

Parent Project ID: P120895 Original EA Category: A - Full Assessment

Current Closing Date: 31-Dec-2016

Basic Information – Additional Financing (AF)

Project ID: P156049 Additional Financing

Type (from AUS): Scale Up

Regional Vice President: Jorge Familiar Proposed EA Category: A

Country Director: Mary A. Barton-Dock Expected Effectiveness

Date: 8-Feb-2017

Senior Global Practice

Director: Pierre Guislain Expected Closing Date: 31-Dec-2017

Acting Practice

Manager: Gylfi Palsson Report No: PAD1512

Team Leader(s):

Pierre Xavier

Bonneau,Mamadou

Lamarane Deme

Borrower

Organization Name Contact Title Telephone Email

Ministry of Economy and

Finance, MEF Lys Faucher

Head of

UCP

011-509-3701-

7662 [email protected]

Project Financing Data - Parent (Infrastructure & Institutions Emergency Recovery-

P120895) (in USD Million)

Key Dates

Project Ln/Cr/TF Status Approval

Date Signing Date

Effectiveness

Date

Original

Closing Date

Revised

Closing Date

P120895 IDA-H5510 Effectiv

e 18-Mar-2010 22-Mar-2010 23-Apr-2010 30-Jun-2013 31-Dec-2016


e 27-Sep-2012 06-Nov-2012 05-Feb-2013 30-Jun-2016 31-Dec-2016

Disbursements

Project Ln/Cr/TF Status Currency Original Revised Cancelled Disburse

d

Undisbu

rsed

%

Disbursed

P120895 IDA-H5510 Effectiv XDR 41.90 41.90 0.00 41.90 0.00 100.00

6

e


e XDR 23.30 23.30 0.00 13.22 10.08 56.75

Project Financing Data - Additional Financing Second Additional Financing Infrastructure

& Institutions Emergency Recovery (P156049)(in USD Million)

[ ] Loan [ ] Grant [X] IDA Grant

[ ] Credit [ ] Guarantee [ ] Other

Total Project Cost: 2.80 Total Bank Financing: 2.80

Financing Gap: 0.00

Financing Source – Additional Financing (AF) Amount

BORROWER/RECIPIENT 0.00

IDA Grant 2.80

Total 2.80

Policy Waivers

Does the project depart from the CAS in content or in other significant respects? No

Explanation

Does the project require any policy waiver(s)? No

Explanation

Bank Staff

Name Role Title Specialization Unit

Pierre Xavier Bonneau Team Leader

(ADM

Responsible)

Program Leader Program Leader LCC8C

Mamadou Lamarane

Deme

Team Leader Program

Manager

CO-TTL LCRRF

Prosper Nindorera Procurement

Specialist (ADM

Responsible)

Senior

Procurement

Specialist

Sr. Procurement Specialist GGO04

Fabienne Mroczka Financial

Management

Specialist

Sr. Financial

Management

Specialist

Sr. Financial Management

Specialist

GGO22

Aboubacar

Magassouba

Team Member Consultant Procurement Specialist GGO04

Asli Gurkan Safeguards

Specialist

Senior Social

Development

Specialist

Senior Social Development

Specialist

GSU04

Jacqueline Beatriz

Veloz Lockward

Counsel Paralegal Paralegal LEGLE

7

Malaika Becoulet Team Member E T Consultant Transport & Disaster Risk

Management Analyst

GTI04

Margaret Patricia

Henley Barrett

Team Member Consultant Urban & Disaster Risk

Management Specialist

GTI04

Ignacio Jauregui Counsel Country Lawyer Senior Counsel LEGLE

Isabella Micali-

Drossos

Counsel Senior Counsel Senior Counsel LEGLE

Andrianirina Michel

Eric Ranjeva

Team Member Finance Officer Finance Officer WFALA

Faly Diallo Team Member Finance Officer Finance Officer WFALN

Locations

Country First Administrative

Division

Location Planned Actual Comments

Haiti Departement de

l'Ouest

Port-au-Prince X X

Haiti Republic of Haiti

Institutional Data

Parent ( Infrastructure & Institutions Emergency Recovery-P120895 )

Practice Area (Lead)

Transport & ICT

Contributing Practice Areas

Macro Economics & Fiscal Management

Cross Cutting Topics

[ ] Climate Change

[ ] Fragile, Conflict & Violence

[ ] Gender

[ ] Jobs

[ ] Public Private Partnership

Sectors / Climate Change

Sector (Maximum 5 and total % must equal 100)

Major Sector Sector % Adaptation Co-

benefits %

Mitigation Co-

benefits %

Transportation Urban Transport 35

Water, sanitation and flood protection Flood protection 20

Public Administration, Law, and

Justice

Public administration-

Financial Sector

20

Water, sanitation and flood protection Wastewater Collection

and Transportation

15

8


Justice

Central government

administration

10

Total 100

Themes

Theme (Maximum 5 and total % must equal 100)

Major theme Theme %

Social protection and risk management Natural disaster management 100

Total 100

Additional Financing Second Additional Financing Infrastructure & Institutions Emergency

Recovery (P156049)

Practice Area (Lead)

Transport & ICT

Contributing Practice Areas

Governance, Macro Economics & Fiscal Management

Cross Cutting Topics

[ ] Climate Change

[ ] Fragile, Conflict & Violence

[ ] Gender

[ ] Jobs

[ ] Public Private Partnership

Sectors / Climate Change

Sector (Maximum 5 and total % must equal 100)

Major Sector Sector % Adaptation Co-

benefits %

Mitigation Co-

benefits %


Justice

Public administration-

Financial Sector

100

Themes

Theme (Maximum 5 and total % must equal 100)

Major theme Theme %

Public sector governance Public expenditure, financial

management and procurement

100

Total 100

Consultants (Will be disclosed in the Monthly Operational Summary)

Consultants Required ?Consultants will be required

9

1. This Project Paper seeks the approval of the Executive Directors to provide an additional

grant in the amount of SDR 2.0 million (US$2.8 million equivalent) to the Republic of Haiti for

the Infrastructure and Institutions Emergency Recovery Project (IIERP – P120895; IDA Grant

Nos. H551-0-HT; H812-0-HT).

2. On October 3, 2016, a category IV Hurricane, Matthew, hit Haiti and caused a large-scale

disaster and a humanitarian emergency. The Bank is providing an immediate response to this

hurricane through existing IDA operations, including this proposed Additional Financing (AF) as

well as a proposed Providing Education of Quality in Haiti Project (P155191). The AF and

Education project were prepared prior to the disaster but, given their scope and location of

investments, will help address impacts. Specifically, this proposed second additional grant

would finance new activities aimed at supporting governance and public financial management

(PFM) (Component 1), which is a critical need in the context of the current emergency, as well

as complete ongoing road rehabilitation works. The resources would also cover the financing gap

due to the depreciation of the SDR allocation.

3. The proposed Additional Financing (AF) (P156049, Grant No. IDA- D1360-HT) would

also involve a level two project restructuring, which would include:

(i) an extension of the closing date of the Project by 12 months, from December 31,

2016 to December 31, 2017, to allow for the completion of additional activities

deriving from the recently adopted Public Financial Management Reform Action Plan

(PFMRAP) under Component 1, and the rehabilitation of the road between Cap

Haitian and Labadie under Component 2 of the parent Project;

(ii) dropping the EDH (Power Utility) financial statements audit (now covered by the

IDA-financed Rebuilding Energy Infrastructure and Access Project (P127203), the

WIMAX backup of the Central Bank payment system network and the Civil Service

census, all under Component 1; these freed resources would remain within

Component 1 to cover new activities stemming from the PFMRAP and the Public

Investment Management Action Plan (PIMAP);

(iii) dropping the Rehabilitation of Aviation Safety Equipment, works for the

rehabilitation of the road between Milot and Cap Haïtien, and mineral extraction, all

under Component 2, due to shifting government priorities and use of domestic

resources for these activities;

(iv) reallocation of funds to reflect those activities already completed and the discrepancy

between planned expenditures versus actual expenditures; and

(v) modifications to the PDO Level and Intermediate Level Results Indicators to monitor

the results expected from the modified activities.

4. This is the second AF to the IIERP. The first additional grant in the amount of SDR 23.3

million (US$35.0 million equivalent), complemented the parent grant of SDR 41.9 million

(US$65 million equivalent), and financed the scale-up of activities of the parent Project. With

10

the proposed second AF, the level of International Development Association (IDA) funding for

the Project would increase from SDR 65.2 million (US$100 million equivalent) to SDR 67.2

million (US$102.8 million equivalent). The proposed second AF would not entail any change to

the project development objective or its institutional and implementation arrangements.

A. Country Context

5. Haiti’s geography, people, and history provide it with many opportunities. The third

largest Caribbean nation by area and population (10.4 million), Haiti shares the island of Kiskeya

with the Dominican Republic. In addition to an illustrious early history, as the first independent

nation in the region and the first nation in the world to be led to independence by former slaves,

Haiti benefits from proximity and access to major markets, a young labor force, a dynamic

diaspora, and substantial geographic, historical, and cultural assets. The country possesses

untapped markets and a pent-up demand for the private sector to explore, including in

agribusiness, light manufacturing, and tourism.

6. Yet Haiti remains the poorest country in the Western Hemisphere and one of the poorest

countries in the world, with a 2014 GDP per capita of US$824. Almost 60 percent of the

population lives below the national poverty line and inequality is high, with wealth and

economic opportunity concentrated around Port-au-Prince.[1]

Access to basic services is limited,

particularly in rural areas, which has translated into low human development indicators (Haiti

ranks 168th out of 187 countries in the Human Development Index).

7. Six years after the catastrophic earthquake of 2010, reconstruction efforts have yielded

tangible progress. The earthquake killed an estimated 230,000 people (including scores of

professionals and public servants) and displaced 1.5 million, causing damages and losses of 120

percent of GDP.[2]

Reconstruction followed in the wake of the humanitarian effort, and progress

has been made in several areas. Extreme poverty fell from 31 percent to 24 percent between

2000 and 2012, infrastructure and private sector activity have expanded, and health and

education indicators have improved over the same period, thanks in part to substantial expansion

of donor assistance after the earthquake and to sustained levels of remittances from the Haitian

Diaspora. Nevertheless, Haiti remains extremely vulnerable to natural disaster with 96 percent of

the population at risk. On average, each disaster costs 2 percent per GDP per year, and

occasionally much more.

8. On October 3, 2016, Hurricane Matthew, a category IV hurricane, landed in Haiti and

caused a large scale disaster affecting over 2.1 million people (almost 1/5 of the population) and

leaving almost 1.4 million people in need of lifesaving assistance in the southern part of the

country. Winds speeds up to 140 mph and torrential rain for 48 hours (around 1,016 mm)

triggered widespread flooding and numerous landslides and caused severe damage to all sectors -

[1]

The national consumption-based poverty line is US$1.98 per day, and the Gini coefficient is the highest in Latin

America at 0.6. These results are presented in Investing in People to Fight Poverty in Haiti (World Bank 2015). [2]

These results are presented in the Haiti Country Partnership Framework (Report No.98132-HT).

11

water, electricity, education, health, food security, and livelihoods - particularly in the South

Grand-Anse, and Nippes departments. The disaster also resulted in heavy damage to road

infrastructure and buildings with thousands of houses flooded and without roofs as well as

destruction of major bridges and roads. Substantial damage was also sustained in the agricultural

sector with up to 80 to 90 percent losses of crops in some areas, including staple food, tree crops,

and livestock. An upward of 500 schools are also estimated to have been destroyed and

approximately 3,000 schools damaged, thus disrupting school for nearly over 470,000 children

of ages six to fourteen. An uptake of suspected cholera cases has been reported in the affected

departments where facilities were heavily damaged.

9. The hurricane has also exacerbated an already fragile state, where political uncertainty

and a deteriorating economic environment were threatening post-earthquake gains. Nearly

simultaneous municipal, parliamentary, and presidential elections in 2015 exacerbated

underlying divisions in society, and contested election results in the late 2015 led to the

appointment of a transitional government. Elections were rescheduled for October 9, 2016 and

November 27, 2016. However, the damage sustained during the Hurricane Matthew triggered

further postponement of the elections to November 20, 2016 and January 29, 2017.

10. Matthew is also expected to compound major economic challenges. Despite robust

macroeconomic management, Haiti has seen limited growth, low revenue generation, and

declining external financing (from aid and concessional borrowing), driven by shifts in

international priorities and deteriorating global and regional economic conditions.[3]

Moreover,

an ongoing drought over the last three growing seasons has increased food insecurity,

contributed to high inflation of domestic food prices and caused a contraction of the agricultural

sector, which employs the majority of the poor. Taken together, these factors contribute to a

decline in available resources for service delivery from the State and to increasing difficulty for

households, who bear a large share of education and health costs, to cover such expenses,

threatening the progress made in human development and poverty reduction. According to

preliminary estimates, damages and losses caused by Matthew will likely amount 22 percent of

GDP. It is also expected that the restoration of agriculture in the areas affected is likely to be

very challenging. These developments are likely to further hamper domestic resources

mobilization and increase Haiti’s reliance on official development assistance and remittances.

11. In terms of both immediate disaster response and long-term recovery, support from

Haiti’s partners for improvements in governance is critical, since weak public sector

management is one of the key constraints to quality public service delivery, including in disaster

recovery management. The Bank Systematic Country Diagnostic revealed that Haiti’s dismal

developmental results can easily be attributed to many factors, including primarily the limited

capacity of the Government to steer economic and social development, combined with persistent

political instability and frequent natural disasters. These challenges translate into: (i) poor

governance; (ii) absence of accountability; and, (iii) weak institutional capacity compounded by

outsourcing of key public service delivery in social sectors (Education, Health, Water,

Sanitation, etc.) to donors and NGOs, especially after the 2010 earthquake. However, with

massive aid inflows in sharp decrease six years after the earthquake, the Government has begun

[3]

Details are discussed in the Haiti Systematic Country Diagnostic (SCD) referenced below.

12

work to increase efficiency and effectiveness in the use of available resources to better deliver on

public services, and understands that an overhaul of PFM institutions, systems and processes is

needed to support these efforts.

B. Sectoral and Institutional Context

12. The January 2010 earthquake further deepened the existing governance challenges by

severely diminishing already weak government capacity. Countries that have experienced major

natural disasters need assistance to restore the main functions of the State. Institution building is

a gradual and difficult process and a precondition for lasting change in Haiti. It can only be

achieved with strong and sustained commitment from Government, Donors, and Partners.

Despite demonstrating improvements in macroeconomic management in the last several years,

weaknesses in public sector management remain and hamper sustained economic growth and

poverty reduction. The impact of Hurricane Matthew on the country may also worsen the

situation and deepen these challenges.

13. Public Financial Management (PFM) capacity has been severely undermined following

the 2010 earthquake. Before the disaster, and with donors’ assistance, the country was trying to

overcome serious shortcomings in PFM, including lack of transparency and accountability in the

management of public resources, and limited institutional and organizational capacity. After the

quake, government efforts supplemented by donors support, especially from the Bank, helped in

restoring key financial management functions, and thereafter in forging the building blocks for

sustained PFM institutional development. In that regard, the Government devised and adopted a

Public Financial Management Reforms Action Plan (PFMRAP) in May 2014, which includes six

main areas related to budget management, treasury management, external controls, revenue

mobilization, financial decentralization, and financial information systems. In December 2014,

with Bank support, the Government also completed a review of the Public Investment

Management (PIM) system, and endorsed a PIM Action Plan (PIMAP) organized around 10

measures to strengthen public investment planning, programming, budgeting, execution, and

monitoring in the upcoming three years. Implementation of the PFMRAP and PIMAP is

underway under the GoH leadership and coordination.

14. As learned from the 2010 earthquake and previous emergencies in Haiti, prioritization,

accountability and efficiency in the management of public resources and delivery of services, as

well as appropriate use and effectiveness of donor assistance are key following a disaster. In that

perspective, the proposed second AF and restructuring would continue to support the

implementation of the PFMRAP and the PIMAP, building institutional capacity and public

financial management systems to improve public expenditures planning, budgeting, tracking,

accounting and reporting; public procurement; investment planning; controls in the use of public

resources; and by establishing a culture of transparency and accountability that aims to reduce

corruption.

C. Consistency with CPF

15. The proposed second AF is fully aligned with the Country Partnership Framework (CPF)

for Haiti (FY16-FY19), discussed by the Board of Executive Directors on September 29, 2015

(Report No. 98132-HT). Activities to be financed by the proposed second AF would contribute

13

to the strategic objective of promoting inclusive growth and to the cross-cutting objective of

strengthening governance and helping Haiti to mitigate the impact of natural disasters.

D. Parent Project and First Additional Financing Background

16. Parent Project Grant (H551-0-HT): The original IIERP in the amount of SDR 41.9

million (US$65 million equivalent) was approved on March 1, 2010, and became effective on

April 23, 2010. The original closing date of the project was June 30, 2013.

17. First Additional Financing (H812-0-HT): The first Additional Financing to the IIERP in

the amount of SDR 23.3 million (US$35 million equivalent) was approved by the Executive

Board of Directors on September 27, 2012. The AF became effective on February 5, 2013, and

the closing date was June 30, 2016.

18. Project Restructuring: The project closing date was extended once by 36 months with

the first Additional Financing to June 30, 2016, and again by 6 months to December 31, 2016

with the Project Restructuring in June 2016, for a total cumulative extension of 54 months. The

extension allowed for the completion of the remaining activities to strengthen public financial

management under Component 1, and for the continued rehabilitation of the road between Cap

Haïtien and Labadie under Component 2.

19. The Project Development Objective (PDO) is to support the Recipient in its sustainable

recovery efforts from the effects of the Emergency, through selected interventions aiming at

contributing to rebuilding key institutions and infrastructure. The PDO of the parent Project was

slightly revised under the first AF to remove the word “early” before “recovery efforts.”

Additionally, project activities were expanded under the first AF. The achievement of the PDO

is supported by the following project components: (1) restoring key economic and financial

functions of the recipient, (2) emergency rehabilitation of selected public infrastructure, and (3)

institutional support, reconstruction planning and project management. The proposed second AF

will support Component 1 of the Project, as described in the Financing Agreement.

E. Status of Implementation

20. The implementation of the IIERP is proceeding reasonably well, with both the

Implementation Progress (IP) and Development Objective (DO) rated consistently over the last

twelve months as “Moderately Satisfactory”. The Project has also demonstrated substantial

compliance with key loan covenants, including audit and financial management reporting

requirements. The parent Project has disbursed a total of US$64.5million (equivalent to 100

percent) and the Additional Financing has disbursed a total of US$20.39 million (equivalent to

58.26 percent) as of October 10, 2016. The Project has complied with all environmental, social

and fiduciary safeguard requirements, and both financial management and procurement have

been carried out in accordance with the Bank’s Financial Management and Procurement

Guidelines. Component 1 of the parent Project and first AF assisted the government in achieving

the full re-establishment (through relocation and physical structure rehabilitation), and thereafter

operationalization (through provision of goods, equipment and technical assistance) of key

government financial institutions. The first AF also supported the preparation and adoption of

14

the new PFMRAP, as well as the PIMAP, both of which address PFM reforms in a strategic and

coordinated approach.

F. Rationale for Additional Financing, Project Restructuring and Additional Benefits

21. The Government of Haiti (GoH) officially requested additional financing from the World

Bank to offset the impact of the recent drop in the SDR/$ exchange rate which resulted in a

financing gap estimated at US$0.5 million for Component 1. The proposed AF would also

finance an increase in costs of ongoing activities under Component 1 of the Project due to minor

cost overruns for the construction of the airport customs office and additional needs arising from

the implementation of the PFMRAP and PIMAP, especially those related to the implementation

of the Information Technology Roadmap activities. More specifically, the proposed AF would

continue to support institutional capacity building and public financial management systems in

order: (i) to improve public expenditures planning, budgeting, tracking, accounting and

reporting; public procurement; investment planning; controls in the use of public resources; and

(ii) to foster a culture of transparency and accountability that aims to reduce corruption.

22. The proposed AF would provide the opportunity to effectively align the project activities

with key PFM reforms activities set out in the PFMRAP and PIMAP agreed upon with the GoH

and with donors interested in PFM reforms (see Annexes 4 and 5 for more details).

Scope of the Additional Financing

23. The proposed second AF would provide additional financing to support Component 1

(Restoring Key Economic and Financial Functions of the Recipient) of the Project with the

additional SDR 2.0 million (US$2.8 million equivalent). The existing PDO and other project

components remain relevant and there would be no change under the proposed AF.

24. This AF would also include a Level Two Restructuring with changes captured in

subsequent sub-sections.

Closing Date

25. The proposed second AF and restructuring would extend the closing date of the parent

Grant and the Additional Financing by 12 months from December 31, 2016 to December 31,

2017. The financing agreements of the parent Project and the first AF would be amended

accordingly. This extension would allow for the completion of the IT Roadmap as well as

PFMRAP and PIMAP activities supported under Component 1, and the rehabilitation of the road

between Cap Haitian and Labadie under Component 2.

15

Project Components

26. Component 1 – Restoring Key Economic and Financial Functions of the Recipient:

Under this component, some activities initiated with the parent Project, including the WIMAX1

backup of the Central Bank payment network and the Électricité d'Haïti (EDH) financial

statements preparation and audit2 would be dropped. The available resources released from these

discontinued activities (around US$2 million) and the residual envelope from the first AF

(US$1.6 million) would be mobilized to finance activities related to the implementation of the

PFMRAP and PIMAP. In addition to supplementing funding for cost overruns for the customs

building contract, and ongoing project activities that are already well aligned with the six priority

areas set out in the PFMRAP, the proposed second additional grant and restructuring will enable

the project to finance additional PFMRAP and PIMAP reform needs, such as: (i) public

investment management planning, programming, budgeting, execution and monitoring; (ii)

progressive introduction of an updated and more integrated financial management information

system in line with the IT Roadmap adopted by the government in 2013 and supported by

various donors (United States Agency for International Development (USAID); European Union

(EU); and Inter-American Development Bank (IDB); and (iii) PFMRAP and PIMAP reforms

coordination and management. Annex 4 details how these new activities were selected and how

all project activities are re-aligned to support PFMRAP and PIMAP implementation moving

forward.

27. Component 2 – Emergency Rehabilitation of Selected Public Infrastructure: The

proposed restructuring would also involve changes to activities under Component 2. Activities

under Sub-Component 2.1 – Rehabilitation of Aviation Safety Equipment of the first additional

grant would be dropped from the project due to shifting government priorities and use of national

funding for these activities. Additionally, in subcomponent 2.3, the remaining funds would be

used to finance the ongoing rehabilitation of the Road from Cap Haitian to Labadie, as originally

planned. The works for the rehabilitation of the road between Milot and Cap Haitian would be

limited to spot interventions in the urban area of Milot instead of a full rehabilitation, as the

rehabilitation of the main segment of the road would be performed by the GoH with national

budget resources.

28. Component 3 – Institutional Support, Reconstruction Planning and Project Management:

No change.

29. The Operational Manual would be updated to reflect the above changes.

A. Proposed Changes Data Sheet

Summary of Proposed Changes

1 The WIMAX was supposed to be deployed 6 months after the earthquake, as an emergency activity. However, its

completion was delayed for years by various implementation issues and the Central Bank meanwhile found

alternative ways to cope with its destroyed payment network. 2 EDH financial statements preparation and audit activity was transferred to the Bank-financed Rebuilding Energy

Infrastructure and Access Project (P127203), approved in FY13.

16

The proposed second additional grant is necessary to a scale-up PFM support through additional activities

and to cover the financing gap due to the depreciation of the SDR allocation and some cost overruns in the

Parent Project. . The Government of Haiti (GoH) officially requested additional financing from the World

Bank for this purpose and to offset the impact of the sharp drop in the SDR/$ exchange rate which resulted

in a financing gap of US$0.5 million for Component 1. The proposed AF would also finance additional

needs arising from the implementation of the PFMRAP and PIMAP, especially those related to the

implementation of the Information Technology Roadmap activities and an increase in costs of ongoing

activities under Component 1 due to costs overruns for the construction of the airport customs office. The

proposed AF would extend the closing date of the Project by 12 months, from December 31, 2016 to

December 31, 2017 and allow for changes in some PDO Level and Intermediate Level Results Indicators

to monitor the results expected from the modified activities. The financing agreements of the parent

Project and the first AF would be amended to be in line with the AF2.

Change in Implementing Agency Yes [ ] No [ X ]

Change in Project's Development Objectives Yes [ ] No [ X ]

Change in Results Framework Yes [ X ] No [ ]

Change in Safeguard Policies Triggered Yes [ ] No [ X ]

Change of EA category Yes [ ] No [ X ]

Other Changes to Safeguards Yes [ ] No [ X ]

Change in Legal Covenants Yes [ X ] No [ ]

Change in Loan Closing Date(s) Yes [ X ] No [ ]

Cancellations Proposed Yes [ ] No [ X ]

Change in Disbursement Arrangements Yes [ ] No [ X ]

Reallocation between Disbursement Categories Yes [ X ] No [ ]

Change in Disbursement Estimates Yes [ X ] No [ ]

Change to Components and Cost Yes [ X ] No [ ]

Change in Institutional Arrangements Yes [ ] No [ X ]

Change in Financial Management Yes [ ] No [ X ]

Change in Procurement Yes [ X ] No [ ]

Change in Implementation Schedule Yes [ ] No [ X ]

Other Change(s) Yes [ ] No [ X ]

Development Objective/Results PHHHDO

Project’s Development Objectives

Original PDO

The Project Development Objective is to support the Recipient in its early sustainable recovery efforts

from the effects of the Emergency, through selected interventions aiming at contributing to rebuilding key

institutions and infrastructure

Current PDO (revised in first AF) PHCURRPDO

17

The Revised PDO is to support the Recipient in its sustainable recovery efforts from the effects of the

Emergency, through selected interventions aiming to rebuilding key institutions and infrastructure.

Change in Results Framework PHHCRF

Explanation:

The Results Framework would be adjusted to reflect the change and impact of project activities under

Component 1 and Component 2. Three new indicators were added under Component 3 to capture results

of activities financed by the parent Project and first AF which were previously not captured. See Annex 1

for details.

Compliance

Covenants - Additional Financing (Second Additional Financing Infrastructure & Institutions

Emergency Recovery - P156049)

Source of

Funds

Finance

Agreement

Reference

Description of

Covenants Date Due Recurrent Frequency Action

Conditions

Source Of Fund Name Type

IDAT Update of Operations Manual Effectiveness

Description of Condition

The Recipient has prepared and adopted, in form and substance satisfactory to the Association, the

Operations Manual.

Risk PHHHRISKS

Risk Category Rating (H, S, M, L)

1. Political and Governance High

2. Macroeconomic Substantial

3. Sector Strategies and Policies Substantial

4. Technical Design of Project or Program Moderate

5. Institutional Capacity for Implementation and Sustainability Moderate

6. Fiduciary Substantial

7. Environment and Social Moderate

8. Stakeholders Moderate

9. Other

OVERALL Substantial

Finance

Loan Closing Date - Additional Financing (Second Additional Financing Infrastructure &

Institutions Emergency Recovery - P156049)

Source of Funds Proposed Additional Financing Loan Closing Date

18

IDA Grant 31-Dec-2017

Loan Closing Date(s) - Parent ( Infrastructure & Institutions Emergency Recovery -

P120895 )

PHHCLCD

Explanation:

The proposed additional financing would also extend the closing date of the Project and first two grants

(IDA-H5510 and IDA-H8120) by 12 months from December 31, 2016 to December 31, 2017, to coincide

with the closing date of the additional grant. The financing agreements of IDA-H5510 and IDA-H8120

would be amended accordingly. This extension would allow for the completion of the IT Roadmap as well

as PFMRAP and PIMAP activities under Component 1, and the rehabilitation of the road between Cap

Haitian and Labadie under Component 2.

Ln/Cr/TF Status Original Closing

Date

Current Closing

Date

Proposed Closing

Date

Previous Closing

Date(s)

IDA-

H5510 Effective 30-Jun-2013 30-Jun-2016 31-Dec-2017

30-Jun-2016,

31-Dec-2016

IDA-

H8120 Effective 30-Jun-2016 30-Jun-2016 31-Dec-2017

30-Jun-2016,

31-Dec-2016

Change in Disbursement Estimates (including all sources of Financing)PHHCDE

Explanation:

Additional funds will be disbursed in support of the project.

Expected Disbursements (in USD Million)(including all Sources of Financing)

Fiscal Year 2016 2017 2018

Annual 0.80 1.30 0.70

Cumulative 0.80 2.10 2.80

Allocations - Additional Financing (Second Additional Financing Infrastructure & Institutions

Emergency Recovery - P156049)

Source of

Fund Currency

Category of

Expenditure

Allocation Disbursement %(Type

Total)

Proposed Proposed

IDAT XDR

Goods, works, non-

consulting services,

consultants’ services, and

Operating Costs for Part

1 of the Project

2.00 100.00

Total: 2.00

Reallocation between Disbursement Categories PHHRBDC

Explanation:

The disbursement tables of the first two grants (IDA-5510 and IDA-H8120) would be revised to reallocate

funds between different disbursement categories. The accompanying revised Procurement Plan can be

found in Annex 2. The indicative financing plan by component is shown below in Tables 1 and 2.

Ln/Cr/TF Currency Current Category of Allocation Disbursement %(Type

19

Expenditure Total)

Current Proposed Current Proposed

IDA-H5510 XDR GO/CW/Non-CS/CS/OP

Part 1

6,440,000.0

0

5,320,319.0

0 100.00 100.00

IDA-H5510

GO/CW/Non-CS/CS Part

2

22,510,000.

00

23,450,330.

00 100.00 100.00

IDA-H5510 GO/CW/Non-CS/CS/OP

Part 3

3,220,000.0

0

3,587,321.0

0 100.00 100.00

IDA-H5510 PPF REFINANCING 9,650,000.0

0

9,542,030.0

0 0.00 0.00

IDA-H5510 Unallocated 80,000.00 0.00 100.00 100.00

IDA-H5510 Designated Account 0.00 0.00 0.00 0.00


IDA-H5510 UN Advances 0.00 0.00 0.00 0.00

IDA-H5510 UN Advances 0.00 0.00 0.00 0.00

Total: 41,900,000.

00

41,900,000.

00

IDA-H8120 XDR GO CW NCS CS OP Part

1 b,c,d,e,f

7,989,000.0

0

7,989,000.0

0 100.00 100.00

IDA-H8120

GO CW NCS CS Part 2

c,d,e

13,514,000.

00

13,514,000.

00 100.00 100.00

IDA-H8120 GO CW NCS CS OP Part

3 a,b,c,d,g,h

1,797,000.0

0

1,797,000.0

0 100.00 100.00



Total: 23,300,000.

00

23,300,000.

00

Components

Change to Components and Cost PHHCCC

Explanation:

The Government of Haiti (GoH) officially requested additional financing from the World Bank to offset

the heavy impact of the sharp drop in the SDR/$ exchange rate which resulted in a financing gap of

US$0.5 million for Component 1. The proposed additional grant would also finance an increase in costs of

ongoing activities under Component 1 of the project due to costs overruns for the construction of the

airport customs office and additional needs arising from the implementation of the PFMRAP and PIMAP,

especially those related to the implementation of the Information Technology Roadmap activities.

This additional grant would also involve a project restructuring, which would include: (i) an extension of

the closing date of the Project by 12 months, from December 31, 2016 to December 31, 2017, to allow for

20

the completion of additional activities deriving from the recently adopted PFMRAP under Component 1,

and the rehabilitation of the road between Cap Haitian and Labadie (ii) dropping the EDH (Power Utility)

financial statements audit, the WIMAX backup of the Central Bank payment system network and the Civil

Service census, all under Component 1; these freed resources would remain within Component 1 to cover

new activities stemming from the PFMRAP and PIMAP; (iii) dropping of Rehabilitation of Aviation

Safety Equipment and the works for rehabilitation of the road between Milot and Cap Haitien, and

reference to mineral extraction in the Financing Agreement, all under Component 2, due to shifting

government priorities and use of alternative funding for these activities; (iv) a reallocation of funds to

reflect those activities already complete and the discrepancy between planned expenditures versus actual

expenditures; and (v) modifications to the PDO Level and Intermediate Level Results Indicators to

monitor the results expected from the modified activities.

Current Component

Name

Proposed Component

Name

Current Cost

(US$M)

Proposed

Cost (US$M) Action

Project Preparation

Advance

Project Preparation

Advance 15.00 15.00 No Change

1. Restoring Key

Economic and Financial

Functions of the

Recipient

1. Restoring Key

Economic and Financial

Functions of the

Recipient

10.00 24.80 Revised

2. Emergency

Rehabilitation of

Selected Public

Infrastructure

2. Emergency

Rehabilitation of Selected

Public Infrastructure

35.00 55.30 Revised

3. Institutional Support,

Reconstruction Planning

and Project Management

3. Institutional Support,

Reconstruction Planning


5.00 7.70 Revised

Total: 65.00 102.80

Other Change(s) PHImplemeDel

Implementing Agency Name Type Action

Change in Procurement

Explanation:

Procurement arrangements will not change, but two additional procurement methods have been added and

reflected in the Financing Agreements: Selection of UN agencies (UNOPS) and Single-source procedures

for the Selection of Individual Consultants.

Appraisal Summary

Economic and Financial Analysis PHHASEFA

Explanation:

No change.

Technical Analysis PHHASTA

Explanation:

No change.

21

Social Analysis PHHASSA

Explanation:

No change.

Environmental Analysis

Explanation:

No change.

Risk

Explanation:

No change.

B. Revised Financing Plan

30. The proposed restructuring would involve a reallocation of funds to reflect those

activities already complete and the discrepancy between planned expenditures versus actual

expenditures. The accompanying revised Procurement Plan can be found in Annex 3. The

indicative financing plan by component is detailed in Annex 2, Tables 1 and 2.

C. Results Framework

31. The Results Framework would be adjusted to reflect the changes and impact of project

activities under Component 1 and Component 2. Three new indicators were added under

Component 3 to capture results of activities financed by the first grant (IDA-H5510) which were

previously not captured. In addition, Component 1 indicators related to Public Expenditure and

Financial Accountability (PEFA) would be dropped and replaced since the PEFA exercise was

not undertaken in 2013-2014 (as was expected) nor is it planned in the coming years.

Furthermore, the PEFA Report and indicators are currently being reviewed and updated at the

global level. See Annex 1 for details on proposed changes to the Results Framework.

D. Institutional Arrangements

32. The proposed second additional grant would be implemented using the institutional

framework, procurement, financial management and disbursement arrangements in place under

the parent IIERP and first additional grant, all of which are working well and have the capacity

to absorb additional funds. Both financial management and procurement have been carried out

in accordance with the Bank’s Financial Management and Procurement Guidelines, and there

would be no changes to either financial management or procurement arrangements of the Project

beyond the Operation Manual updating. Procurement arrangements will not change, but two

additional procurement methods have been added and reflected in the Financing Agreements:

selection of UN agencies (UNOPS) and single-source procedures for the selection of individual

consultants.

E. Social, Environmental and Fiduciary

22

33. The Project has complied with all social, environmental and fiduciary safeguard

requirements.

34. The OPs triggered under the parent Project include: OP 4.01 Environmental Assessment,

OP 4.04 Natural Habitats, OP 4.09 Pest Management, OP 4.11 Physical Cultural Resources and

OP 4.12 Involuntary Resettlement). No additional Safeguard policies would be triggered under

the second additional grant. The activities that triggered the Environmental Assessment

Category A rating under the parent Project and first additional grant are now completed. The

rating would be maintained, however, as Category A until project closure. No additional

activities proposed in the second AF under Component 1 would require an update to the

Environmental and Social Management Framework (ESMF), Environmental Management Plan,

(EMPs) or Resettlement Action Plans (RAPs) that were prepared and cleared by the Bank for the

debris processing, canal cleaning, bridge, and road works financed under the parent Project.

There are no new activities proposed under Component 2 or 3, and the existing safeguard

documents (specifically the EMPs and the Rapid Social Assessment) will continue to apply to

the remaining activities. A RAP for the Cap-Labadie road was prepared, consulted, and disclosed

on March 9, 2016 on both the Bank’s external website and locally on the Ministry of Public

Works, Transport, Energy and Communications website, and is currently being implemented.

35. The Project´s capacity to manage safeguards has proven satisfactory. The implementing

agency has a dedicated social and environmental cell that has successfully identified, mitigated,

and resolved safeguards issues across the project´s interventions. The Bank has also carried out

several workshops to strengthen the client´s local environmental and social capacity.

36. An audit for IIERP would be conducted annually. Each audit of the Financial Statements

for the Project shall cover the period of one fiscal year of the Recipient. The last audit shall cover

a period, which can be of more or less than 12 months to include the grace-period. The report

for the audit for each such period would be submitted to the Bank no later than four months after

the end of such period.

37. There are no overdue audit reports for the Project.

F. Amendment to Financing Agreement

38. The proposed second additional grant and Restructuring would involve an amendment to

the Financing Agreements of the parent Project grant (H-551-0-HT) and the first additional grant

(H-812-0-HT) to include all activities defined under Parts 1, 2 and 3 of the parent Project.

Presently, these activities are limited to Part 1 (b, c, d, e, f), Part 2 (b, c, d, e, f) and Part 3 (a, b, c,

d, g, h). These amendments would align project activities between the two grants. It would

finance the additional activities as described above and accommodate cost overruns on activities

under the parent Project and the first additional grant.

39. The overall risk of the proposed Project is Substantial (based on the Systematic

Operations Risk-rating Tool – SORT). Two key risks remain relevant to the proposed second

23

AF: (i) the political and governance risk of ongoing instability in leadership due to delayed

elections may cause unexpected changes in the Government’s policy objectives; and (ii)

fiduciary risk, which is heightened by the emergency resulting from the Hurricane. These risks

will continue to be managed through active dialogue and consensus-building with stakeholders

around the Government’s PFM Reform Action Plan, in which strong emphasis is placed on

strengthening PFM systems, and through its implementation. In addition, the Government is

working with Bank support to strengthen project management arrangements for accounting and

control of resources. Risk with regard to Institutional Capacity for Implementation and

Sustainability is considered moderate. The MEF has improved its technical capacity to steer and

manage the project activities and PFM reforms with support from the Bank. Longstanding and

successful implementation of activities under the parent Project and additional grant

demonstrates effective risk mitigation for other risks.

40. Activities financed under the proposed additional grant are expected to benefit the

general population as a result of support to key public financial institutions.

41. All activities that triggered the Environmental Assessment Category “A” rating under the

parent Project have been completed and this proposed AF would not finance any new activities

of that nature. No additional risks are expected as a result of the proposed additional grant and

the proposed additional grant builds upon strong prior experience under IIERP. Nevertheless,

consistent with the parent Project rating, the overall risk rating of the proposed AF is assessed as

“Substantial”. The risk ratings are captured below in the SORT.

Risk Categories Rating (H, S, M or L)

1. Political and governance High

2. Macroeconomic Substantial

3. Sector strategies and policies Substantial

4. Technical design of project or program Moderate

5. Institutional capacity for implementation and sustainability Moderate

6. Fiduciary Substantial

7. Environment and social Moderate

8. Stakeholders Moderate

9. Other

Overall Substantial

42. Communities and individuals who believe that they are adversely affected by a World

Bank (WB) supported project may submit complaints to existing project-level grievance redress

mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints

received are promptly reviewed in order to address project-related concerns. Project affected

communities and individuals may submit their complaint to the WB’s independent Inspection

24

Panel which determines whether harm occurred, or could occur, as a result of WB non-

compliance with its policies and procedures. Complaints may be submitted at any time after

concerns have been brought directly to the World Bank's attention, and Bank Management has

been given an opportunity to respond. For information on how to submit complaints to the World

Bank’s corporate Grievance Redress Service (GRS), please visit

http://www.worldbank.org/GRS. For information on how to submit complaints to the World

Bank Inspection Panel, please visit www.inspectionpanel.org.

http://www.worldbank.org/GRS

http://www.inspectionpanel.org/

25

HAITI: Second Additional Financing to the Infrastructure and Institutions Emergency Recovery Project

Results Framework

Revisions to the Results

Framework

Comments/

Rationale for Change

PDO

Parent Project (PAD) Changes with First Additional

Financing – Current

Proposed Changes

To support the Recipient in its early

sustainable recovery efforts from the effects

of the Emergency, through selected

interventions aiming at contributing to

rebuilding key institutions and

infrastructure.

To support the Recipient in its

sustainable recovery efforts from the

effects of the Emergency, through

selected interventions aiming at

contributing to rebuilding key

institutions and infrastructure.

No change.

PDO indicators



Proposed Changes

Estimated number of people benefiting from

repaired infrastructure (including the

proportion of women)

No change. No change.

Project influenced the reconstruction

planning process for Port-au-Prince and

surrounding affected areas so that public

consultation mechanisms are strengthened.


MEF restored internal control and audit, and

able to process payroll.


Project beneficiaries.


Of which female (beneficiaries) No change. No change.

Intermediate Results indicators



Proposed Changes

Project Preparation Advance

Number of individuals receiving and using No change. Activity complete. Activity complete.

26

immediate recovery supplies.

Component 1: Restoring key economic and financial functions of the Recipient

Intermediate Result 1: Quality and comprehensive government accounts reports are produced and submitted within the legal timeframe to the Supreme Audit

Institution. They include data on both recurrent and capital expenditures.

Quality and timeliness of annual financial

statements (PI 25)

New. Dropped and replaced by new indicator

below.

This indicator (PI 25) is too broad to

capture the actual impact of the project

activities in this domain. The project

provided support to Treasury through the

purchase of accounting software

(general ledger account) which helped to

produce annual financial statements. The

project planned to support better

accounting and monitoring of public

expenditure through a new accounting

system. In addition, it is not clear that a

new PEFA will be completed any time

soon. PEFA Report and Indicators are

also going under transition toward an

updated version.

Scope, nature and follow-up of external

audit (PI 26)

New. Dropped and replaced by new indicator

below.

Too broad to account for the limited

activity done under the project in this

domain, and a new PEFA will not be

done before the closing of the project.

PEFA Report and Indicators are also

going under transition toward an updated

version.

The MEF established and operationalized

four (04) accounting posts (postes

comptables) to control budget expenditures

in line ministries.

New. This indicator is a proxy to measure

improvement in internal control as it was

intended in the original indicator.

Number of months elapsed between the end

of a fiscal year and actual submission of the

consolidated government general accounts

for external audit to CSC/CA.

New. The indicator is taken from the CSI (7.3)

and adjusted to account for project

activities in support of Treasury for the

preparation and submission of

government financial statements to

CSC/CA within the statutory timeframe.

Number of days elapsed between the

submission of the government general

accounts to CSC/CA and the submission of

. New. This new indicator is also taken from the

Core sector Indicators (8.3) and adjusted

to account for the capacity building

27

the audit report of the government general

accounts to MEF by the CSC/CA.

activities support to CSC/CA to improve

its control performance of public

expenditures.

Legislative scrutiny of the annual budget

law (PI 27)

Dropped. The project does not support any activity

related to Parliament.

Legislative scrutiny of external audit reports

(PI 28)

Dropped. The project does not support any activity

related to Parliament.

Intermediate Result 2: Key government budgetary and financial functions are fully restored

Payment system: The processing of public

servants salaries is fully restored and the

registry of civil servants is updated.

Revised. Payroll PEFA Indicators: PI-18 Revised (and Activity Completed). Payment system: The processing of

public servants salaries is fully restored

and the registry of civil servants is

updated.

Original indicator was met early in the

parent Project. Updated indicator in first

AF to be better aligned with the 2011

PEFA report. However, PI-18 is

complex and includes 4 broad sub-

dimensions (degree of integration and

reconciliation between Payroll and

personal records; timeliness of changes

to personal records; internal controls of

changes to personal records and payroll;

and existence of payroll audits) that the

project does not support. Hence, the

second AF aims to revert to the initial

indicator, which was actually completed

with project support.

Number of Public Financial Management

entities back in operation following the

earthquake.

New (Activity complete). This ad-hoc output indicator is intended

to capture the project’s multiple

activities and realizations to restore key

PFM entities and functions such as (i)

budget preparation (DGB and DEE); (ii)

government expenditure processing and

payment (Treasury); (iii) revenue

collections (DGI and AGD); and (iv)

control of the use of public resources

(CSC/CA, IGF, ULCC, CNMP)

Intermediate Result 3: Public investment projects management improved

Percentage of investment projects included

in the PIP in the six agreed pilot ministries,

which are evaluated ex-ante by the UEPs

according to official guidelines.

New. This new indicator is taken from CSI

(10.1) and adjusted to account for

project activities to improve public

investment management based on the

PIM report.

28

Intermediate result 4: Small customs office is built and operational

Small Customs Building is built and used to

provide services to the public.is operational,

complying with international social and

environmental standards.

Revised: Small Customs Building is

built and used to provide services to the

public.

Slightly revised to clarify the indicator

definition.

Component 2: Emergency Rehabilitation of Selected Public Infrastructure Km of roads rehabilitated or repaired to

agreed standards. (IDA CORE

INDICATOR)


Number of infrastructure built with due

attention paid to sustainability as well as

social and environmental aspects.


Estimated number of days of work

generated by infrastructure repair or

reconstruction.

Estimated number of days of work

generated by infrastructure repair or

reconstruction disaggregated by gender.

No change.

Truitier Debris Processing Facility is

operational, complying with international

social and environmental standards and

support implementation of all stakeholders

efforts for debris removal.

No change.

No change. Activity Complete.

Aviation safety equipment is strengthened

to support air traffic accordingly to

international standards. Compliance of

procured goods for aviation safety

infrastructure in line with Standards and

Recommended Practices (SARP) of ICAO.

New.

Dropped. Activity dropped due to change in

government priorities.

All bridge reconstruction or repairs financed

under the project include seismic stops or

equivalent design solutions aiming at

improving the resilience to future disasters.


Component 3: Institutional Support, Reconstruction Planning and Project Management:

Crisis governance institutions received

institutional strengthening support.

Key services of MTPTC received

institutional strengthening support to be

able to handle reconstruction process, Technical Unit for Building Evaluations

and Dissemination of Best Practices of

Construction (BTB) is created and

operational and leads dissemination of

repair, retrofit, and construction best

No change.

29

practices.

Number of building structural damage

assessments

New. New. Included to account for the results

achieved through the development of the

BTB.

Number of masons and engineers trained in

paraseismic construction



BTB.

Number of technical reference guidelines

regarding paraseismic

construction prepared under the project



BTB.

CIAT has become an institution capable of

influencing the reconstruction planning

process with due attention being paid to

social and environmental issues.


Reconstruction planning alternatives

consulted with relevant stakeholders.


Fiduciary agent hired. No change. No change. Activity Complete.

30

REVISED PROJECT RESULTS FRAMEWORK

Project

Name:

Second Additional Financing and Restructuring

Infrastructure & Institutions Emergency Recovery (P156049)

Project

Stage: Additional Financing Status: FINAL

Team

Leader(s): Pierre Xavier Bonneau

Requesting

Unit: LCC8C Created by: Margaret Patricia Henley Barrett on 10-Jun-2015

Product

Line: IBRD/IDA

Responsible

Unit: GTI04 Modified by: Margaret Patricia Henley Barrett on 24-Oct-2016

Country: Haiti Approval FY: 2016

Region: LATIN AMERICA AND

CARIBBEAN

Lending

Instrument: Investment Project Financing

Parent Project

ID: P120895

Parent Project

Name: Infrastructure & Institutions Emergency Recovery (P120895)

Project Development Objectives

Original Project Development Objective - Parent:

The Project Development Objective is to support the Recipient in its early sustainable recovery efforts from the effects of the Emergency, through

selected interventions aiming at contributing to rebuilding key institutions and infrastructure

Current Project Development Objective – First Additional Financing (AF1):

The Revised PDO is to support the Recipient in its sustainable recovery efforts from the effects of the Emergency, through selected interventions

aiming to rebuilding key institutions and infrastructure.

Proposed Project Development Objective – Second Additional Financing (AF2):

No change.

Results

Core sector indicators are considered: Yes Results reporting level: Project Level

Project Development Objective Indicators

Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target

No Change MEF restored internal control

and audit, and able to process

Yes/No Value No Yes Yes

Date 09-Jan-2016 31-Dec-2016

31

payroll. Comment

No Change Estimated number of people

benefiting from repaired

infrastructure

Number Value 700000.00 800000.00

Date 09-Jan-2016 31-Dec-2016

Comment

No Change Project influenced the

reconstruction planning process

for Port-au-Prince and

surrounding affected areas so

that public consultation

mechanisms are strengthened.


Date 09-Jan-2016 31-Dec-2016

Comment

New Project beneficiaries

Number Value 0.00 2000.00

Date 09-Jan-2016 31-Dec-2016

Comment Has been present

since beginning

of project, but

was not included

in RF in Portal.

New Of which female (beneficiaries)

Percentage Value 50.00

Sub Type

Supplemental

Intermediate Results Indicators

Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target

Marked for

Deletion

PI-25 Quality and timeliness of

annual financial statements

Text Value D+ Not available C

Date 01-Jun-2015 30-Jun-2016

Comment This indicator (PI

25) is too broad to

capture the actual

impact of the

project activities

in this domain.

32

The project

provided support

to Treasury

through the

purchase of

accounting

software (general

ledger account)

which helped to

produce annual

financial

statements. The

project planned to

support better

accounting and

monitoring of

public

expenditure

through a new

accounting

system. In

addition, it is not

clear that a new

PEFA will be

completed any

time soon.

Marked for

Deletion PI-26 Scope, nature and

follow-up of external audit


Date 01-Jun-2015 30-Jun-2016

Comment Too broad to

account for the

limited activity

done under the

project in this

domain, and a

33

new PEFA will

not be done

before the

closing of the

project. PEFA

Report and

Indicators are

also going under

transition

toward an

updated version.

Marked for

Deletion PI-27 Legislative scrutiny of

the annual budget law


Date 01-Jun-2015 30-Jun-2016

Comment The project does

not support any

activity related

to Parliament.

Marked for

Deletion PI-28 Legislative scrutiny of

external audit reports


Date 01-Jun-2015 30-Jun-2016

Comment The project does

not support any

activity related

to Parliament.

Marked for

Deletion

Aviation safety equipment in

strengthened to support air

traffic accordingly to

international standards.

Yes/No Value No No No

Date 01-Sep-2013 30-Jun-2016

Comment Activity

dropped due to

change in

government

priorities.

34

No Change Number of Individuals

receiving and using immediate

recovery supplies.

Number Value No 50,000 50,000

Date 01-Feb-2016 01-Feb-2016

Comment Activity

complete.

New MEF established and

operationalized four accounting

posts (postes comptables) to

control budget expenditures in

line ministries


Date 09-Jan-2016 31-Dec-2016

Comment This indicator is a

proxy to measure

improvement in

internal control as

it was intended in

the original

indicator.

New Number of months elapsed

between the end of a fiscal year

and actual submission of the

consolidated government

general accounts for external

audit to CSC/CA


Date 24-Sep-2015 31-Dec-2016

Comment The indicator is

taken from the

CSI (7.3) and

adjusted to

account for

project activities

in support of

Treasury for the

preparation and

submission of

government

financial

statements to

CSC/CA within

the statutory

timeframe.

New Number of days elapsed

Number Value 0.00 120.00 15.00

35

between the submission of the

government general accounts to

CSC/CA and the submission of

the audit report of the general

accounts to MEF by the

CSC/CA

Date 09-Jan-2016 31-Dec-2016

Comment This new

indicator is also

taken from the

Core sector

Indicators (8.3)

and adjusted to

account for the

capacity building

activities support

to CSC/CA to

improve its

control

performance of

public

expenditures.

Revised Payment system: The

processing of public servants

salaries is fully restored and the

registry of civil servants is

updated.


Date 09-Feb-2011 09-Feb-2011

Comment Activity

complete.

New Number of Public Financial

Management entities back in

operation following the

earthquake

Text Value 9 entities and FM

main functions

(budget

preparation;

revenue

collection; payroll

and salary

payments;

external and

internal controls

9 entities and

FM main

functions

(budget

preparation;

revenue

collection;

payroll and

salary payments;

external and

internal controls

Date 24-Sep-2015 31-Dec-2016

Comment

36

New Percentage of investment

projects included in the PIP in

the six agreed pilot ministries

which are evaluated ex-ante by

the UEPs according to official

guidelines.

Percentage Value 0.00 50.00

Date 09-Jan-2016 31-Dec-2016

Comment

Revised Small Customs Building is

built and used to provide

services to the public.

Text Value 0 No. Building is

under

construction.

Yes, Complete

and operational.

Date 09-Jan-2016 31-Dec-2016

Comment

No Change Roads rehabilitated, Rural

Kilometers Value 0.00 90.00 100.00

Date 31-Dec-2017 31-Dec-2016

Comment

No Change Number of infrastructure built

with due attention paid to

sustainability as well as social

and environmental aspects.


Date 09-Jan-2016 31-Dec-2016

Comment

No Change Estimated number of days of

work generated by

infrastructure repair or

reconstruction disaggregated

by gender.

Number Value 45000.00 50000.00

Date 09-Jan-2016 31-Dec-2016

Comment

No Change Truitier Debris Processing

Facility is operational,

complying to international

social and environmental

standards and support

implementation of all

stakeholders efforts for debris

removal.


Date 01-Oct-2013 31-Dec-2016

Comment Activity

complete.

No Change All bridge reconstruction or


37

repairs financed under the

project include seismic stops or

equivalent design solutions

aiming at improving the

resilience to future disasters

Date 10-Jun-2015 31-Dec-2016

Comment

Revised Key services of MTPTC

received institutional

strengthening support to be

able to handle reconstruction

process, Technical Unit for

Building Evaluations and

Dissemination of Best Practices

of Construction


Date 09-Jan-2016 31-Dec-2016

Comment

New Number of building structural

damage assessment

Number Value 0.00 430000.00 430000.00

Date 24-Sep-2015 31-Dec-2016

Comment

New Number of masons and

engineers trained to

paraseismic construction

Number Value 0.00 12000.00 14000.00

Date 24-Sep-2015 31-Dec-2016

Comment

New Number of technical reference

guidelines for paraseismic

construction prepared under

the project

Number Value 0.00 4.00 4.00

Date 24-Sep-2015 31-Dec-2016

Comment

No Change CIAT has become an

institution capable of

influencing the reconstruction

planning process with due

attention being paid to social

and environmental issues


Date 10-Jun-2015 31-Dec-2016

Comment Activity

complete.

No Change Reconstruction planning

alternatives have been


Date 02-Feb-2012 31-Dec-2016

38

consulted with relevant

stakeholders

Comment Activity

complete.

No Change Fiduciary agent has been hired


Date 06-Feb-2012 31-Dec-2016

Comment Activity

complete.

39

HAITI: Second Additional Financing to the Infrastructure and Institutions Emergency

Recovery Project

Table 1: Project Components and Detailed IDA Allocation Revisions (in SDR millions)

Components/Activities Project Costs (SDR m.)

Parent Reallocated 1st

AF 2nd

AF Total

(reallocated + 1st AF + 2

nd AF)

Expense Category 1

Component 1: Restoring Key

Economic and Financial Functions

of the Recipient

6.44 5.32 7.99 2.0 15.21

Expense Category 2

Component 2: Emergency

Rehabilitation of Selected Public

Infrastructure

22.51 23.45 13.51 0 36.96

Expense Category 3

Component 3: Institutional

Support, Reconstruction Planning


3.22 3.59 1.80 0 5.39

Expense Category 4

Project Preparation Advance

9.65 9.54 0 0 9.54

Expense Category 5

Unallocated

0.080 0 0 0 0

Total 41.90 41.90 23.30 2.0 67.20 *Expenditure categories have been modified to include the entire parts of the Project as in the amended AF1 FA, for consistency with

the revised Project Description.

Table 2: Allocation of Proceeds (SDR)

Category of

Expenditure

Allocation % of Financing

Parent/Current Parent Revised 1stAdditional

Financing

2nd

Additional

Financing &

Restructuring

Parent Current Revised

(1) Goods, Works, non-


Consultant’s Services,

and Operating costs for

Part 1 of the Project

6,440,000 5,320,31 7,989,000 2,000,000

100% 100% 100%

(2) Goods, Works, non-


consultants’ services for

Part 2 of the Project

22,510,000 23,450,330 13,514,000

0

100% 100% 100%

(3) Goods, Works, Non-

consultant services,

consultants’ services, and

Operating Costs for Part 3

of the Project

3,220,000 3,587,321 1,797,000 0 100% 100% 100%

(5) Refund of Preparation

Advance

9,650,000 9,542,030 0 0

(6) Unallocated 80,000 0 0 0 Amount payable pursuant to

Section 2.07 of the General

Conditions

41,900,000 23,300,000 67,200,000

40


Recovery Project

Contract (Description) Est.

Cost/Real

Cost

(US$)

Procureme

nt /

Selection

Method

Planned

Contract

signature

date

Planned Completion

Date

Comment

Component 1 – Restoring Key Economic and Financial Functions of the Recipient

Construction of small customs building at the airport. 1,925,000 ICB December

2013

January 2016 Signed,

ongoing

Equipment of small customs at airport 650,000 LC Oct 2015 January 2016

Accountability and efficiency:

supply chain of fiscal reporting and execution and

linking systems (IT Blue-Print and BRH);

assist Treasury (DGT) and links to sector ministries;

support accounting profession (OCPAH);

operationalize public investment systems

implementation units in ministries (MPCE-UEPs);

improve internal and external audit and control

(CSCCA/IGF); and

8,200,000 QCBS,

Individual

Consultants

Oct 2012-

end of

project

October 2017

Transparency and participation:

enhance public access to government information &

data (eGov);

improve data collection, statistics and records

management;

support anticorruption activities of the Anticorruption

Agency (Unite de Lutte Contre la Corruption –

ULCC) and improve its links to procurement (CNMP)

2,100,000 QCBS,

Individual

Consultants

Oct 2012-

end of

project

October 2017

Project Management/ studies or training to strengthen

Haiti’s governance and institutional capacity

1,100,000 QCBS,

Individual

Consultants

Oct 2012-

end of

project

October 2017

Component 2 – Emergency Rehabilitation of Selected Public Infrastructure

Road

Rehabilitation:

Labadie - Cap

Haitien

Design 100,000 Direct

Contracting

Complete

Supervision 500,000 QCBS Contract signed July 2015

to end of project

Works 7,200,000 ICB Contract signed,

December 2015 to end of

project

RAP and social technical assistance

and compensation

150,000 QBS Complete

Sub project for local community 150,000 Direct

contracting

February 2016 to

December 2016

Component 3 – Institutional Support, Reconstruction Planning and Project Management

Technical Assistance to MTPTC (multiple contracts) 500,000 QCBS,

3CV

February 2016 to end of

project

Goods & Equipment – Datacenter (multiple contracts) 200,000 LC, direct

contracting

July 2016

Small Office Building for MTPTC/BTB services 300,000 LC3 July 2016

41


Recovery Project

1. The project restructuring and second additional grant is an opportunity for the Bank to

realign the IIERP activities with the PFMRAP adopted by the GoH in May 2014. This Annex

provides an overview and update on the country’s overall PFM reforms implementation, how the

Bank contributed to PFM achievements to date through the IIERP, and how IIERP activities

would be realigned to help the country meet its PFMRAP objectives.

A. Overall PFM Reforms Context and Implementation

2. The Bank Systematic Country Diagnostic4 for Haiti revealed that Haiti’s dismal

developmental results can easily be attributed to many factors, including primarily the limited

capacity of the GoH to steer economic and social development, combined with persistent

political instability and frequent natural disasters. These challenges translate into: (i) poor

governance; (ii) absence of accountability; and, (iii) weak institutional capacity compounded by

outsourcing of key public service delivery in social sectors (Education, Health, Water,

Sanitation, etc.) to donors and NGOs, especially after the earthquake.

3. However, with massive aid inflows (especially the Venezuelan supported Petro-caribe

program) in sharp decrease six years after the earthquake, the government is working to increase

efficiency and effectiveness in the use of available resources, to better deliver on public services.

There is now broad consensus within the GoH of the need to overhaul PFM institutions, systems

and processes to support these efforts.

4. Following years of protracted and ad-hoc PFM reform activities, the government decided

to adopted a comprehensive PFMRAP in May 2014, with Bank support, to address PFM sector

issues more strategically and more systematically, streamline reform measures and move toward

long term goals.

5. The PFMRAP covers six areas, namely: (i) Revenue Mobilization; (ii) Budget

Management and internal controls; (iii) Treasury management and Accounting; (iv) External

Controls and Audit; (v) Financial Information Management System; and (vi) Local Government

Finance.

6. From its own assessment of the PFMRAP execution recently undertaken (December

2015), the GoH noted mixed overall results:

• Two areas (Treasury and Accounting and FMIS) have shown some promising

progress with the establishment of the Treasury Single Account and the initial steps

taken to upgrade and integrate budget and treasury information systems;

4 Haiti Systematic Country Diagnostic: Opportunities For All, May 2015, The World Bank

42

• Others, such as Revenue Mobilization and Budget Management and internal controls,

have been somewhat active with the adoption of multiyear reforms plans in Tax and

Customs Administration and, in Public Investment Management (PIM); and,

• Whereas the reforms activities in the last two areas (External controls and local

government finance) did not progress as expected, despite some ad-hoc outstanding

initiatives in external audit.5

7. Additionally, through newly established coordination and monitoring mechanisms, the

GoH was, for the first time, able to better lead the PFM reforms processes and activities.

Meanwhile, all major donors including the Bank; European Union (EU); United States Agency

for International Development (USAID); Inter-American Development Bank (IDB);

International Monetary Fund (IMF); and Canada are also working more closely together to align

with the PFMRAP objectives and activities, in order to avoid duplication and boost synergies.

B. Bank support in the PFM sector

8. The Bank has been involved in strengthening economic governance and PFM in Haiti

since before the earthquake, given the importance of public sector management to developmental

issues.

9. Following the earthquake, the Bank increased its support to PFM activities through two

combined approaches involving Development Policy Operations (DPO) and Technical

Assistance operations.

10. Various DPOs were initiated to provide emergency support and governance and

institutional capacity building in public sector in general, and PFM sector in particular. DPOs

yielded fewer results than anticipated since most of the prior PFM measures did not last.

Building on lessons learned, a new multiyear operation is currently in preparation for the next

three year period and is expected to yield more impact and results in the PFM sector.

11. Technical Assistance operations were undertaken immediately after the earthquake in

2010. IIERP helped to restore critical PFM functions including budgeting, accounting, payroll

and external controls through provision of buildings, equipment, training, and consultants

services to MEF units and some key institutions such as the CS-CCA; the Procurement

Regulatory Agency (Commission Nationale des Marches Publics – CNMP) and the ULCC.

12. After the initial phase (Parent Project), the first additional grant included a second TA

operation, to consolidate the initial phase results and assist the GoH to address more structured

and longer term issues linked to PFM. PFMRAP, prepared and adopted with support from the

Bank in May 2014, is based on these findings.

5 CSCCACSC/CA undertook its first ever review of annual budget spending for FY13-14, and Petro-Caribe program

and the reports received wide press coverage

43

13. The proposed second additional grant and restructuring would focus on activities

expected to increase the GoH’s PFM operational effectiveness while paving the way for more

accountability of public officials and their use of public resources.

14. To this end, the second additional grant will be strictly aligned to support PFMRAP

implementation (See Annex 4 for further detail on the realignment of project activities to support

the PFMRAP), especially in promising areas which are critical to building the basic blocks of a

robust PFM system, namely: (i) investment budget management reforms with the establishment

of Coordination and Planning Unit (Unité d’étude et de Programmation – UEP) in line

ministries; and strategic planning as well as budgeting and programming at the MPCE and MEF

levels; (ii) TSA set-up; (iii) upgrading and integration of Financial Management Information

Systems; (iv) strengthening of internal and external controls; and (v) procurement etc.

Conversely, some important activities included under the Parent Project have been dropped,

namely the WIMAX network at the Central Bank, due to delays and lack of relevancy; and, EDH

financial statement preparation and audit, due to its transfer to the Bank-financed Rebuilding

Energy Infrastructure and Access Project (P127203), approved in FY2013.

44

HAITI: Second Additional Financing to the Infrastructure and Institutions Emergency Recovery Project

PFMRAP PRIORITY AREAS IIERP (PARENT & 1st AF) ONGOING

ACTIVITIES

IIERP (2nd

AF) REVISED ACTIVITIES

1. Mobilization of internal and external resources

1.1 Tax Revenue Generation

1.2 Customs Revenue Generation Construction of Customs Airport Facility Maintained and ongoing

1.3 Mobilization of External Resources

1.4 Mobilization of Other Resources

2. Overall Budget Management

2.1 Macroeconomic Framework of the

Budget Law Support to macroeconomic capacity building activities

(Economic Studies Department-DEE)

Maintained and ongoing

EDH Financial Statements preparation and audit Dropped. Transferred to Rebuilding Energy Infrastructure and Access

Project (P127203).

2.2 Strategic Planning Support to Ministry of Plan (MPCE) planning capacity

building activities (not defined)

Revised to support activities derived from the 2014 PIM Report approved

recommendations (Support to six Line Ministries Planning Units Capacity

Building Action Plan)

2.3 Financial Programming and

Budgeting Support to Ministry of Plan (MPCE) programming and

Budgeting activities (not defined)

Revised to support activities derived from the 2014 PIM Report approved

recommendations (Support to MPCE and six Line Ministries Planning

Units Capacity Building Action Plan)

2.4 Budget execution procedures and

internal control

Support to Internal Audit Unit (Inspection Generale

des Finances-IGF)


Support to Ministry of Economy and Finance (MEF) and MPCE through

PIM Report approved recommendations: “Streamlining and simplifying

budget spending execution procedures”

2.5 Procurement Support to the National Tender Board (CNMP) broadly

defined


2.6 Program Budget and Results Based

Management

3. Treasury and Accounting

3.1 Treasury Single Account

Support to the TSA establishment (not defined) Revised to support setting-up of 8 Accounting Units in line ministries and

training of accountants

3.2 Cash Management

Restoration of the Central Bank (BRH) payment

network through a WIMAX network

Dropped because of lack of progress and establishment of alternative

payment system networks by BRH

3.3 Management of Public Debt

3.4 Deployment of the Accounting Units Revised to support setting-up of 8 Accounting Units in line ministries and

45

PFMRAP PRIORITY AREAS IIERP (PARENT & 1st AF) ONGOING

ACTIVITIES

IIERP (2nd

AF) REVISED ACTIVITIES

in Line Ministries training of accountants

3.5 Accounting - Finance Support to MEF and MPCE through PIM Report approved

recommendations: “Extending the use of SYSDEP as an accounting

system for capital project expenditure included in the PIP”

Support to private accounting through professional

association (Organisation des Comptables

Professionnels et Auditeurs de Haiti-OCPAH)

strengthening


4. Local Governance Finances

4.1 Budget of local authorities

4.2 Mobilizing local resources

4.3 Accounting for local authorities

4.4 Monitoring of local authorities

5. External control

5.1 External Monitoring by the CSC-CA Support to the Supreme Audit Institution (Cour

Supérieure des Comptes et du Contrôle Administratif-

CS-CCA) broadly defined


Support to Anti-corruption Agency (ULCC) Maintained and ongoing (very small amount remaining)

6. Financial Management Information System

6.1 Steering and Control

Support to IT Roadmap Supervision, Implementation, Monitoring and

Updating

6.2 Technical dimension

Support to IT Roadmap Implementation: procurement and provision of

the overall integrated accounting and budget management information

system

6.3 Support and common reference Support to IT Roadmap Implementation: procurement and provision of

cross-cutting applications (data warehouse management software; security

software; etc.)

Support to IT Roadmap Implementation: strengthening of the IT Unit

capacity (work space, equipment, and staffing)

6.4 Communication

7. PFMRAP Preparation and Implementation

7.1 PFM Reforms Management Support to the PFMRAP preparation and adoption Support to the PFMRAP Steering Committee capacity building program

and activities (work space, equipment, and staffing)

7.2 Fiduciary Management Support to UCP- MEF (fiduciary) Maintained and ongoing

Documents

New World Bank Document · 2016. 11. 7. · ADDITIONAL FINANCING DATA SHEET Haiti Second Additional Financing for Infrastructure & Institutions Emergency Recovery (P156049) LATIN